Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 55

The state awards a grant of $50,000 to the Town of Glenville.The state will pay the grant money to the town as a reimbursement for money spent on road repair.At the time of the grant, the state pays $8,000 in advance.During the first year of this program, the town spent $14,000 and applied for reimbursement.What amount of revenue should be recognized
a. $-0-,
b.$8,000.
c. $14,000.
d. $50,000.